Key Factors When Filling With Spouse

1. Choosing Who Prepares Your Taxes

Regular Tax Preparation Services: A basic tax service (like Walmart or similar standalone shops) may be sufficient if your financial situation is simple. However:
- 1099 Income Involves Complexity: As a 1099 contractor, you are considered self-employed. This means you’ll need to file Schedule C (Profit or Loss from Business) and possibly Schedule SE (Self-Employment Tax). Not all tax preparers at these shops are experienced with this, especially if you have business expenses to deduct.
- Look for Experience with Self-Employment: If your 1099 work involves deductions for mileage, a home office, or equipment, a more experienced tax professional (e.g., an accountant or enrolled agent) might help you find deductions a less experienced preparer could miss.

2. Deductions and Credits to Consider

As a 1099 contractor, you can deduct business-related expenses to reduce your taxable income:

Business Expenses: Supplies, advertising, mileage, a home office (if applicable), and other work-related costs can all be deducted.
Self-Employment Tax Deduction: You can deduct half of your self-employment tax (15.3% of your income) on your tax return.
Health Insurance: If you’re paying for health insurance out of pocket, this may be deductible.
Retirement Contributions: You can contribute to a SEP IRA or Solo 401(k) to reduce your taxable income.

These deductions can get complex, so ensure your preparer understands these rules if you’re claiming them.

3. Joint Filing vs. Separate Filing

For most married couples, filing jointly is advantageous because:

You’ll benefit from a higher standard deduction.
Certain tax credits (e.g., Earned Income Tax Credit, Child Tax Credit) are only available to joint filers.

However, if there are major income disparities or specific financial circumstances (e.g., medical expenses, itemized deductions), it could be worth exploring Married Filing Separately. This is rare but worth discussing with your preparer if your combined income creates unusual tax burdens.

4. Finding the Right Tax Preparer

Certified Public Accountant (CPA) or Enrolled Agent (EA): If your self-employment income or deductions are significant, these professionals can help maximize your tax savings.
Online Services with Guidance: Tools like TurboTax or H&R Block’s online options offer self-guided filing with additional support for 1099 workers.
Local Tax Preparers: Many independent accountants or tax firms have expertise in both 1099 and W-2 filings. Check reviews and ask about their experience with self-employed clients.

5. Costs

Regular Tax Shops (e.g., Walmart or H&R Block): Typically charge $100-$300, depending on complexity.
CPAs or EAs: Costs range from $200 to $500+ for a basic return with a Schedule C.
DIY Tax Software: Programs like TurboTax or TaxAct typically cost $50-$150 for 1099 filings with live support options.

6. Tips to Minimize Taxes

Track All Business Expenses: Use apps like QuickBooks Self-Employed or Wave to organize and track deductions throughout the year.
Plan Quarterly Taxes: As a 1099 contractor, you should be making quarterly estimated tax payments to avoid penalties.
Maximize Your Donations: If your donations and other itemized deductions exceed the standard deduction, consider itemizing.

Recommendation

If your 1099 income is straightforward (few deductions, no employees or contractors of your own), a service like H&R Block or even TurboTax might be sufficient. However, if you’re claiming significant business expenses, investing in a CPA or EA with experience in self-employment taxes could save you money in the long run.